Results & Ex-Div Days

Trading the news (i.e. taking positions based on ‘crystal ball’ guesswork!) orTutorial Magnifying Glass trading when news is imminent is never a good idea. Simply put, news adds an extra level of unpredictability and uncertainty that we just don’t need.

Scheduled company news days such as annual or interim results days are easily identified in advance and therefore avoided.

Company results tend to be announced outside of market trading hours and when company news is particularly good or bad prices often jump or ‘gap’. If price gaps over your stop loss this can lead to losses greater than which you planned for. Good trading is good risk management and so avoid news days where possible.

Check out the video below for further explanation.

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